Propane vs. gas

At the moment, there is a significant push for the expansion of natural gas pipelines beyond the current network in Ontario.

While this possibility seems very appealing to many rural consumers, there is more to the economic equation than meets the eye. Let’s not forget that this will come at a price.

In particular, while the cost of natural gas is often less than propane and much less than electricity and other energy options, there are other outlays that need to be considered. These include the cost of connection, new appliances, delivery, and provincial tax expenditures.

Furthermore, only new customers will bear the costs, likely with a 10- to 40-year surcharge, for the large-scale infrastructure investments that will be required to bring natural gas to areas previously deemed not profitable.

Access to reliable, cost-effective and low-emission energy is important for rural communities in Canada, and with rising electricity costs in Ontario, this is particularly true. Propane provides all these benefits and is available here and now, without government subsidy or expensive infrastructure investments.

Yes, natural gas makes sense where the expansion is, in itself, economically viable and where there is a significant, ready-to-go, commercial and residential ratepayer base.

Otherwise municipalities, homeowners and businesses must give serious consideration to the advantages of propane.

Propane requires no large infrastructure expenditure and is distributed by local companies who provide many jobs and who support their home communities.